Your pay didn’t go up 53% in last 5 years but NJ home prices did

Wonder why you can’t afford a home?

Think about the last time you got a raise. Was it significant? Even if it was, was it 53% significant? Likely not.

Go back and recall what you were earning five years ago. Now consider this information that comes from data from New Jersey Realtors. In 2019 New Jersey’s median home selling price was $337,000. Five years later it’s $513,000.

That’s an increase of 52.5%. That’s also known as insane.

If you’re a young couple struggling to afford a first home you may have been feeling defeated. Considering runaway home prices in the Garden State are far outpacing pay increases you should know plenty of people are feeling your frustration.

One of the biggest factors in all this has been inventory. More people wanting to buy a home than there are homes available for sale. It’s basic supply and demand. When demand exceeds supply you can get away with outlandish pricing.

Is it likely to get better soon? Doubtful. A report just came out from Realtor.com data that fewer new homes were listed last month compared to a year earlier. Almost 6% fewer than in January 2023. So that ugly trend continues.

What can a buyer do?

In my opinion you either wait it out for the market to change or you compromise. Expanding your search area to include more affordable towns can mean long commutes. Compromising on number of rooms and square footage can mean kids doubling up on bedrooms or giving up on making that finished basement an entertainment area and using it as your master. No great solutions.

Gee, why is New Jersey the number 1 moved away from state?

Opinions expressed in the post above are those of New Jersey 101.5 talk show host Jeff Deminski only.

You can now listen to Deminski & Doyle — On Demand! Hear New Jersey’s favorite afternoon radio show any day of the week. Download the Deminski & Doyle show wherever you get podcasts, on our free app, or listen right now.

Click here to contact an editor about feedback or a correction for this story.